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Briefs: Lehman scheme meeting faces uncertain outcome, South Australian credit unions merge

19 June 2013 4:14PM
The outcome of Lehman Brothers Australia's creditors scheme meeting in Sydney today has been thrown into doubt by news that the US company Lehman Brothers Holdings Inc has purchased the debt of other Lehman companies, giving it the capacity to vote down the scheme. Last September, the Federal Court found that LBA had engaged in misleading and deceptive conduct when it sold credit derivatives. In April LBA's liquidators sought court approval for the scheme meeting, which would provide an outcome for the churches, local councils and charities that have claimed more than A$450 million of losses from their investments in LBA credit derivatives. Members of the regional South Australian Alliance One Credit Union voted on Monday night to merge with Community CPS. Alliance One is based in Whyalla, South Australia, and has branch operations extending to Port Lincoln, Clare and Roxby Downs. It has 16,000 members, 53 staff and approximately A$233 million in assets. Community CPS, based in Adelaide, has 186,000 members and operates in metropolitan Adelaide, as well as regionally in Port Augusta, Gawler and Victor Harbor. It has $3.6 billion in assets.

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